Small and Medium Enterprises (SMEs) are pivotal in driving economic growth and innovation, yet accessing capital remains one of their most significant challenges. SME Initial Public Offerings (IPOs) have emerged as an alternative financing avenue, offering smaller enterprises a direct pathway to public markets. By listing on platforms like BSE SME and NSE Emerge, these businesses can raise growth capital, enhance their market visibility, and lay the foundation for long-term scalability.
By drawing insights from over a decade of SME IPO activity, this report aims to equip founders, investors, and stakeholders with a deeper understanding of this alternative financing mechanism. This report explores the evolution of SME IPOs in India, focusing on listings till September 2024. We delve into critical questions about SME IPOs, including: What scale have companies achieved when going public? How much capital did they raise? How do valuations correlate with company size? To what extent does pre-IPO growth influence valuations upon listing?
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